HDB reported H1 2026 consolidated TOI of VND22.7tn (USD863mn; +9% YoY) and PBT of VND13.2tn (USD501mn; +31% YoY), slightly ahead of our forecasts. Earnings growth accelerated in Q2 with PBT of VND7.1tn (+51% YoY; +16% QoQ), supported by robust credit growth, NIM improvement, lower provisioning, and stronger subsidiary contributions. However, asset quality remains a key watch point for earnings sustainability.
- H1 2026 credit growth remained robust, with parent-bank credit growth of 18%, tracking well ahead of system-wide credit growth of 8.5%. Growth was broad-based, led by household-related lending (+21%), wholesale and retail (+14%), construction (+24%), and real estate (+12%). Corporate bond balances grew 14% in the same period, accounting ~3% of total credit.
- Funding growth broadly matched loan growth, maintaining ample liquidity. Consolidated deposits increased 20.2% while valuable papers grew 23%. The CASA ratio inched up 0.7 ppts QoQ to 11.1%, but remains at a relatively low level vs peers, reflecting continued pressure on funding costs. The Q2 2026 CAR was more than 14%, remaining the highest in the sector, while LDR was 72% (+3 ppts QoQ; lower vs the regulated cap of 85%), remaining low compared to peers. NSFR and LCR following Basel III both exceeded 100%.
- NIM improved QoQ. Q2 2026 NIM improved 32 bps QoQ, which we attribute to higher yield repricing impact, improving the retail contribution (household business loans), medium-and-long term loans and further optimizing LDR. Additionally, more active corporate bond activities also supported a 76% YoY increase in interest income from debt investments.
- Subsidiaries contributed meaningfully to earnings. We estimate that total subsidiaries’ earnings contribution was approximately VND2.3tn, (~17% of consolidated profit in H1 2026). This is the first quarter that HDB consolidated HD Securities and this subsidiary delivered VND1.5tn in PBT (+286% YoY; ROE 28%). Meanwhile, HD SAISON generated more than VND804bn in PBT (ROE 22%). We estimate HD Saison’s H1 2026 loan growth at nearly 7% and NPL ratio at 7.1% (roughly stable QoQ and YoY).
- Profitability remained among the sector’s strongest, with ROE of 25% and ROA of 2.2%. CIR declined to 24.9%, supported by digitalization and operating efficiency, with digital channels accounting for over 94% of retail transactions and more than 60% of new customers.
- Asset quality deteriorated QoQ. The consolidated NPL ratio edged up, while Group 2 loans increased materially in Q2. The consolidated NPL ratio was 2.79% (+25 bps YoY; +19 bps QoQ). Group 2 loans level was 4.70% (+76 bps YoY; +212 bps QoQ). The consolidated LLR ratio was 50.0%(+2.8 ppts YoY; flat QoQ).
- Lower provisioning was another key earnings driver, with consolidated provision expenses declining 30% YoY and tracking behind our expectations. However, the deterioration in Group 2 loans could lead to higher provisioning requirements in H2 2026.
Figure 1: HDB’s consolidated H1 2026 results
VND bn | H1 2025 | H1 2026 | YoY | Q2 2025 | Q2 2026 | YoY |
NII | 17,227 | 18,236 | 5.9% | 9,819 | 9,753 | -0.7% |
Non-interest income | 3,613 | 4,448 | 23.1% | 1,817 | 2,978 | 63.9% |
TOI | 20,840 | 22,684 | 8.8% | 11,636 | 12,731 | 9.4% |
OPEX | (5,307) | (5,654) | 6.5% | (2,782) | (3,067) | 10.2% |
PPOP | 15,534 | 17,030 | 9.6% | 8,854 | 9,664 | 9.2% |
Provision expenses | (5,466) | (3,828) | -30.0% | (4,141) | (2,570) | -38.0% |
PBT | 10,068 | 13,202 | 31.1% | 4,713 | 7,095 | 50.5% |
NPAT-MI | 7,750 | 10,325 | 33.2% | 3,515 | 5,559 | 58.1% |
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Loan growth** | 14.9% | 20.6% | 5.7 ppts | 14.0% | 9.6% | -4.4 ppts |
Deposit growth** | 9.4% | 20.2% | 10.8 ppts | 2.9% | 8.4% | 5.6 ppts |
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NIM | 4.99% | 3.84% | -115 bps | 5.69% | 4.11% | -158 bps |
Interest-earning asset yield | 9.55% | 9.18% | -38 bps | 10.42% | 9.96% | -45 bps |
Cost of funds | 4.87% | 5.59% | 72 bps | 5.05% | 6.14% | 109 bps |
CASA ratio* | 12.4% | 11.0% | -1.3 ppts | 12.4% | 11.0% | -1.3 ppts |
CASA ratio plus term deposits in FX | 12.5% | 11.1% | -1.4 ppts | 12.5% | 11.1% | -1.4 ppts |
CIR | 25.5% | 24.9% | -0.5 ppts | 23.9% | 24.1% | 0.2 ppts |
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NPLs / Gross loans | 2.54% | 2.79% | 25 bps | 2.54% | 2.79% | 25 bps |
Group 2 loans / Gross loans | 3.94% | 4.70% | 76 bps | 3.94% | 4.70% | 76 bps |
Accrued interest / IEAs | 0.96% | 0.90% | -6 bps | 0.96% | 0.90% | -6 bps |
Source: HDB, Vietcap — *CASA volume includes demand deposits and margin deposits; ** Q2 2025 and Q2 2026 loan and deposit growth is QoQ growth; H1 2025 and H1 2026 loan and deposit growth is 6M growth.
Figure 2: HDB’s separate H1 2026 results
VND bn | H1 2025 | H1 2026 | YoY | Q2 2025 | Q2 2026 | YoY |
NII | 14,402 | 14,867 | 3.2% | 8,395 | 7,966 | -5.1% |
Non-interest income | 2,951 | 2,348 | -20.4% | 1,458 | 1,226 | -15.9% |
TOI | 17,353 | 17,215 | -0.8% | 9,854 | 9,192 | -6.7% |
OPEX | (4,073) | (4,270) | 4.8% | (2,176) | (2,401) | 10.3% |
PPOP | 13,280 | 12,945 | -2.5% | 7,678 | 6,792 | -11.5% |
Provision expenses | (4,012) | (2,025) | -49.5% | (3,436) | (1,554) | -54.8% |
PBT | 9,268 | 10,920 | 17.8% | 4,242 | 5,237 | 23.5% |
NPAT-MI | 7,374 | 8,724 | 18.3% | 3,286 | 4,178 | 27.2% |
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Loan growth** | 15.5% | 19.7% | 4.3 ppts | 14.5% | 8.8% | -5.7 ppts |
Deposit growth** | 9.4% | 20.3% | 10.9 ppts | 2.9% | 8.5% | 5.6 ppts |
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NIM | 4.26% | 3.20% | -106 bps | 4.96% | 3.42% | -154 bps |
Interest-earning asset yield | 8.83% | 8.55% | -27 bps | 9.70% | 9.31% | -39 bps |
Cost of funds | 4.85% | 5.58% | 73 bps | 5.02% | 6.12% | 110 bps |
CASA ratio* | 12.4% | 11.1% | -1.3 ppts | 12.4% | 11.1% | -1.3 ppts |
CASA ratio plus term deposits in FX | 12.5% | 11.1% | -1.4 ppts | 12.5% | 11.1% | -1.4 ppts |
CIR | 23.5% | 24.8% | 1.3 ppts | 22.1% | 26.1% | 4.0 ppts |
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NPLs / Gross loans | 2.36% | 2.64% | 28 bps | 2.36% | 2.64% | 28 bps |
Group 2 loans / Gross loans | 3.82% | 4.59% | 77 bps | 3.82% | 4.59% | 77 bps |
Accrued interest / IEAs | 0.93% | 0.90% | -3 bps | 0.93% | 0.90% | -3 bps |
Source: HDB, Vietcap — *CASA volume includes demand deposits and margin deposits; ** Q2 2025 and Q2 2026 loan and deposit growth is QoQ growth; H1 2025 and H1 2026 loan and deposit growth is 6M growth.
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